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A manufacturing company produces two products, A and B. The selling prices and costs per unit are as follows: Product A: Selling price $50, variable

  1. A manufacturing company produces two products, A and B. The selling prices and costs per unit are as follows:
    • Product A: Selling price $50, variable cost $30, fixed cost $10
    • Product B: Selling price $70, variable cost $40, fixed cost $20 If the company can sell up to 1,000 units of each product and has a maximum of $30,000 in fixed costs, how many units of each product should it produce to maximize profit?
  1. Table Format:

The table below represents the costs incurred by Company XYZ for producing 10,000 widgets in a month:

Cost Category

Amount

Direct Materials

$20,000

Direct Labor

$15,000

Manufacturing Overhead

$25,000

If the company wants to achieve a 30% markup on the cost of production, calculate the selling price per widget.

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